To Employers: How to change terms of an employment contract without risking a law suit

It is not uncommon for employers and employees to seek to have changes in terms of their engagement, and it is not illegal either for the parties to propose such amendments. However, the critical position is that the employer cannot alter the terms of an employment contract without consulting the employee. A decision taken in consultation with another is one that is taken after a discussion with the other party about the thing that is being decided, and both parties have reached a concurrence.

Section 10(5) of the Employment Act 2007 states that where any matter stipulated in subsection (1) changes, the employer shall, in consultation with the employee, revise the contract to reflect the change and notify the employee of the change in writing. The wording of the section is couched in mandatory terms an indication that the employer cannot unilaterally revise the contract unless there is consultation.